Gold plunges as bets of a more hawkish Fed chair rise; set for best month since 1980

Gold slid more than 4% on Friday on rumours the Federal Reserve could get a more hawkish chair, but was still on track for its strongest monthly gain since 1980 as investors flocked to the safe haven amid lingering geopolitical and economic strains. Spot gold lost 3.9% to $5,183.21 per ounce, as of 0323 GMT, after falling as much as 5% earlier. It scaled a record high of $5,594.82 on Thursday. Prices have risen more than 20% so far in January, heading for a sixth straight monthly gain and the largest monthly advance since January 1980. US gold futures for February delivery fell 2.7% to $5,176.40 per ounce on Friday. “So, a potentially less dovish Fed Chairman pick, a rebound in the dollar and gold giving way to overbought conditions have contributed to the decline in the price of the precious metal,” KCM Chief Trade Analyst Tim Waterer said.